What we may have is a failure to communicate: Labeling environmentally certified forest products

To develop an understanding of the performance of different eco-labels for certified forest products, we administered a mail survey to a nationally representative sample of U.S. residents. In the survey, respondents viewed different eco-labels and were asked to perform a series of tasks designed to measure the labels' communication performance. Results indicate that relatively detailed labels are more beneficial for consumers (and environmentally sensitive forest product manufacturers) than simpler eco-seals. Eco-seals are the least credible type of label and, in general, do not allow consumers an adequate basis for product differentiation. However, we also find evidence that marginal changes can significantly improve the performance of simple eco-seals. The results suggest that U.S. consumers value the environmental benefits created from more environmentally benign forestry. Thus, consumer-driven purchases could potentially support a future of environmentally benign forest management practices with less reliance on other policy alternatives. However, the results also suggest that the current state of forest product labeling, where firms can (voluntarily) label their products with simple eco-seals from a variety of certification organizations, is not the most effective labeling approach. Parties who are interested in the long-run success of these programs need to consider altering current labeling approaches.